How to calculate fair value of debt in Haliburton?


1 Answer(s)


Just like there is a stock market for stock trading, there is also a debt market were corporate debt is traded. Fair value is the market value of the debt.

For example if a company has taken $1bn worth of debt, its market/fair value could be higher or lower based on how healthy/unhealthy the company is and its chances of repaying/defaulting.